General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.
General information only - not financial advice. Seek independent advice before making financial decisions.
Redraw wins on cost if repaid within 3–4 years. A $35,000 kitchen via active redraw repaid in 3 years costs ~$3,400 in interest vs ~$9,700 for a 5-year personal loan at 10.5%.
Personal loan wins if you're on a fixed rate (no redraw), if you won't maintain extra repayments, or if you're an investor where redraw would contaminate tax deductibility.
Use our free calculator to get personalised results based on your specific situation. No sign-up required.